Paper plays out

Social Security recipients in Lenoir, Greene, Jones beat the rush to March 1 deadline

Jessika Morgan, Staff Writer

With the March 1 deadline for moving Social Security recipients to an electronic payment plan fast approaching, beneficiaries in Lenoir, Greene and Jones counties have already beat the rush.

A relatively small percentage of recipients in the three counties — 8.4 percent in Lenoir, 11.9 in Greene and 8.8 in Jones — are still receiving payments by check, according to the Social Security Administration.

While many have opted for direct deposit with their bank or credit union, others have chosen the second option — Direct Express card, a debit MasterCard provided by the U.S. Social Security Administration.

Deep Run’s Gladys White, 69, has had the Direct Express card more than a month. While she likes the protection against the paper check theft — which she experienced in October — she can do without the card’s fees.

“I don’t make much money each month,” White said. “Whenever they change stuff like that, it takes away from us.”

She said she’s been charged for using her card at the gas station and at certain grocery stores.

Bradley Benson, media director for the Direct Express campaign, said educating people on how to use the Direct Express card is vital for their savings.

“If they use it right, it won’t cost them anything and that’s what we worry about,” he said.

Benson said card holders have a free network ATM withdrawal per payment and will be charged 90 cents for each subsequent ATM visit thereafter. He advised using cash back options.

“There are ways to use it for free … but it takes a little bit of knowing what the fees are,” he said.

Direct Express cards will be mailed out for those who don’t switch by March 1. Benson said no payments will be interrupted and the e-deposits saved $1.1 billion dollars since 2010, with most people transitioning last year. The U.S. Department of the Treasury launched the electronic payment plan in 2010.

Nearly 95 percent of payments are made electronically already and most complaints are generated by problems with paper checks.

If the Department of Treasury can find a way to educate some 85 million people who receive federal checks on Direct Express and direct deposit, Benson said electronic payments are a win-win.

“There’s a saving to the federal government, which is a big deal,” he said. “Anytime you can save money without cutting anyone’s benefits, it’s a really good thing.”

The paperless measure is estimated to save taxpayers $120 million. In North Carolina, more than 1.93 million people no longer receive paper checks, so a $1.16 million savings per year is expected.

“I think it’s just the way the world’s moving right now,” he said. “I think there are advantages to going paperless. At one point, everybody got paid in gold. At some point they went to currency … to get getting paid with checks. Now it’s going from checks to electronic.”

Jessika Morgan can be reached at 252-559-1078 or at jessika.morgan@kinston.com. Follow her on Twitter @JessikaMorgan.